What was the total value of rebates receivable for Fat Shack at the end of 2023?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
AT SHACK INC. AND SUBSIDIARY STATEMENTS OF CASH FLOWS
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income | $ 130,795 | 218,715 | 383,725 |
| Depreciation | 6,876 | 6,876 | 8,124 |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Changes in assets and liabilities | |||
| Accounts receivable | 15,602 | 20,637 | |
| Rebates receivable | 12,366 | 6,717 | (14,597) |
| Due from franchisees | 13,175 |
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the value of rebates receivable at the end of 2023 was $6,717. This figure is part of the company's cash flow statement, detailing changes in assets and liabilities. Understanding the rebates receivable is important for assessing the company's short-term financial health.
Rebates receivable represent the amount of money that Fat Shack expects to receive from rebates offered by suppliers or manufacturers. This can be an indicator of the effectiveness of the company's purchasing and rebate programs. A higher number suggests that Fat Shack is actively taking advantage of available rebates, which can positively impact its profitability.
For a prospective franchisee, knowing the rebates receivable amount provides insight into how well Fat Shack manages its vendor relationships and leverages opportunities to reduce costs. It also highlights the importance of franchisees adhering to any required processes for claiming rebates, as these can contribute to the overall financial performance of their individual locations and the company as a whole. Paying attention to these details can help a franchisee improve their bottom line.